The Office of Fair Trading has invited opponents of the joint television
venture to lay out their arguments

Opponents of Project Canvas, a joint venture between broadband internet providers and broadcasters, will be able to make their case to the Office of Fair Trading.

Companies, including the BBC, ITV, BT, Channel 4 and Talk Talk, are on board with the scheme, which aims to develop new technology and set-top boxes to support the next-generation of web-delivered video and internet services.

Although the project has been provisionally approved by the BBC Trust, some organisations, including Sky and Virgin Media, believe Canvas could distort the IPTV market, and claim the companies involved with the project have failed to engage sufficiently with the wider industry.

Sky told the BBC Trust that the project favoured free-to-air broadcasters, and that the involvement of the BBC could constitute "state aid" to other partners involved in the project. Canvas partners argue that a common standard is needed to help develop the on-demand television market in the coming years, while opponents, including the Digital TV Group, which has set standards for set-top box technology for more than a decade, claims they and television manufacturers have not bee sufficiently consulted.

In an effort to pre-empt possible accusations of anti-competitive practices, partners involved in Project Canvas have approached the Office of Fair Trading to present reasons for why the scheme does not require further scrutiny.

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According to Richard Halton, director of Project Canvas, it is "clear" that the joint venture "does not qualify as a merger", and he said that the project partners "welcomed the opportunity" to clarify their position.

The Office of Fair Trading has invited submissions from the industry, asking whether they believe Canvas should be viewed as a merger. Those wishing to contribute to the consultation process have until April 7 to make their representations.